Africa News blog

Breaking down the walls – Sudan’s oil transparency push

It was a just another seminar on transparency in the oil sector. Seemingly banal. But this was being held in Khartoum, involving live debates between northern and southern Sudanese officials, a minerals watchdog and the international media, who were allowed free access to publicly grill those who administer what has for years been an absolutely opaque oil industry. What emerged was surprisingly positive and all walked away feeling that — at least until the Jan. 9, 2011 referendum on southern independence — this was the first step towards finally unpicking all the stitches that have sewn the sector tightly shut to outsiders. We are “PR stupid” said the newly appointed Minister for Energy from the former southern rebel Sudan People’s Liberation Movement Lual Deng who instigated the forum. He said this to explain the discrepancies in oil production and oil prices uncovered by the Global Witness NGO whose report “Fuelling Mistrust — the need for transparency in Sudan’s oil sector” provoked the discussion. These include figures published by the ministry of finance web site of oil revenues with little clarification of how they had been calculated, even citing barrels of Sudanese black gold selling for as little as 15 cents a barrel. It also found discrepancies between China’s CNPC who dominates Sudan’s oil sector dogged by U.S. sanctions, and Sudan’s energy ministry output figures. Those figures were easily explained as the difference between gross production and net of water, gas and solids on Wednesday. But the fact an international giant like CNPC is publishing undefined production figures in an annual report provoked concern even from Sudanese officials. And why did it require such an elaborate showcase to provide such a simple response? Minister Deng’s answer was the “PR stupid” line. After months of chasing and waiting in vain for a reply from The government or CNPC to the discrepancies in oil output, including having the phone hung up on them by the Chinese, Global Witness went ahead and published their work. “Next time you should just call us to verify the figures,” was CNPC’s ironic response, with the presenter who had flown in from Beijing for the forum, flashing on a PowerPoint screen the email and mobile number of CNPC’s country manager in Sudan. Just five minutes earlier that same manager had declined my request for a meeting or to share his contacts “in the interests of transparency.” One of dozens of attempts I have made over the years to extract any information from the state-owned firm. I wonder how long he will keep that mobile number. But if you sifted through the barbed comments by Sudanese officials directed at the Global Witness reps and the attempts by CNPC to ridicule the figures, important progress was made. Sudan said it would commit to the Extractive Industry Transparency Initiative, to which CNPC gave its support. It also agreed to a full audit back to 2005 and the ministry said it would publish daily production figures. It also gave French oil giant Total a public guarantee that whether or not the south votes to secede in just five months, its oil concession contract would be honoured. If all this happens, it will be a massive step towards opening up Sudan’s taboo oil sector which could convince those elusive big European companies who left during Sudan during the north-south civil war to come back and invest. Do you see European companies investing in Sudanese oil and gas? If Europeans come back in should U.S. sanctions be lifted to allow American firms to compete for the spoils? Is Sudan – likely to split into two countries in five months –worth the risk for investors?

It was a just another seminar on transparency in the oil sector. Seemingly banal.

But this was being held in Khartoum, involving live debates between northern and southern Sudanese officials, a minerals watchdog and the international media, who were allowed free access to publicly grill those who administer what has for years been an incredibly opaque oil industry.

What emerged was surprisingly positive and all walked away feeling that — at least until the Jan. 9, 2011 referendum on southern independence — this was the first step towards finally unpicking all the stitches that have sewn the sector tightly shut to outsiders.

We are “PR stupid” said the newly appointed Minister for Energy from the Sudan People’s Liberation Movement, Lual Deng, who instigated the forum.

Juwama vs. the Nile Republic – South Sudan searches for a new name

What’s in a name? An entire cultural and national identity if you are from Sudan’s oil-producing south.

The region of southern Sudan is now less than seven months away from a referendum on whether it should split away to form Africa’s newest country.

Is an independent south Sudan now inevitable?

So, is it now inevitable that Sudan’s oil-producing south will decide to split away from the north as an independent country in a looming secession referendum in 2011?

That was the conclusion of some observers of a bluntly worded exchange of views between two leading lights from the north and the south at a symposium in Khartoum on Tuesday.

War child sings songs of peace

“When you see a Sudanese walking on the street there is a story,” child soldier turned hip-hop star Emmanuel Jal says.

That’s certainly true for Jal. He was sent to fight for Sudan People’s Liberation Army when he was just six years old.

What future for southern Sudan?

It’s less than a year before Sudan’s first ever national election, so what are people thinking in the south of the country, in an area blighted by two decades of fighting?

In the village of Leer, reminders of civil war are everywhere, such as a large hole where most of the village would crouch, hiding from bomber planes and helicopter gunships.